Not to defend Apple, but how is this any different than quite literally any other version of targeted ads?
You are logged into an account, that account knows all the apps you've bought, downloaded and installed, and it is displaying ads based on your prior interests. It's targeted in the sense that Apple knows who you are because you are signed into an Apple account and interacting with an Apple service - the same way iCloud.com is targeted in the way it displays your email or photos.
Google has also started moving to this account model, which is why a lot more things pester you to sign into your google account, and why they are moving more services under google.com (e.g. google.com/maps). Google can get enough information from your search history, from your play store behavior, from your YouTube viewing history, etc. They can stop tracking across sites without a huge hit to their ability to display effective ads.
Apple's beef (e.g. the creation of App Tracking Transparency and the death of third party cookies on the platform) was in services who built a detailed profile of user behavior, where the user had no idea or consent it was happening, or any sort of relationship with that service. Facebook for example would track your behavior across all sites which had Facebook javascript loaded or native apps which contained any Facebook-authored SDKs, even if you did not have an account with Facebook.
Apple does not have an issue with advertising in general (which is becoming more obvious as time goes on)
A pre-internet counterpart would be credit bureaus - I don't have a direct relationship with them, I don't have a way to make them stop collecting information about me, I don't really have a way to stop them from giving out my financial and employment history.
Apple (and Google) are trying to change where the line is drawn for user data. Previously, advertising agencies would try to track you around the internet and consolidate that information about your behavior, then figure out what to show you on any website which offers up those ads.
Upcoming systems are meant to have your device track you around the internet, look at what ads are available, and pick one that is the most relevant. User hopefully gets something they at least care about, advertisers get higher conversion, sites can keep paying their hosting and staff costs via ad placements, and no details about which ads a particular user sees are shared - with total viewing and conversions instead provided on a delay and in aggregate.